“As we continue our transformation into a super-regional, LTL freight carrier, it is the right time to reintroduce the Yellow Corporation name and modernize the holding company brand,” said Darren Hawkins, Chief Executive Officer. Once we announced our plans to rebrand, our customers and employees shared their excitement. The Yellow brand is synonymous with the LTL industry and we are honored to continue its proud legacy of service with one of the largest, most comprehensive logistics and LTL networks in North America.
“Migrating to one Yellow technology platform and creating one Yellow network are the key enablers of our enterprise transformation strategy, which is to provide a superior customer experience under one Yellow brand.”
The Company also reported results for fourth quarter and year ended December 31, 2020.
Fourth quarter 2020 operating revenue was $1.165 billion and operating income was $13.7 million. In comparison, operating revenue in fourth quarter 2019 was $1.160 billion and operating income was $9.8 million, which included a $10.1 million net gain on property disposals.
Operating revenue for full year 2020 was $4.514 billion and operating income was $56.5 million, which included a $45.3 million net gain on property disposals. This compares to full year 2019 operating revenue of $4.871 billion and operating income of $16.2 million, which included a $13.7 million net gain on property disposals and $8.2 million for a non-cash impairment charge related to the write-down of an intangible asset.
Net loss for fourth quarter 2020 was $18.7 million, or $0.37 per share compared to net loss of $15.3 million, or $0.46 per share, in fourth quarter 2019. Full year net loss for 2020 was $53.5 million, or $1.28 per share, compared to a full year net loss in 2019 of $104.0 million, or $3.13 per share, which included a $11.2 million loss on extinguishment of debt associated with a refinancing of the Company’s term loan agreement.
Hawkins continued “During the fourth quarter volume and pricing continued to improve in a tighter capacity environment. As the industrial and retail segments of the economy rebound a shortage of drivers is keeping a lid on LTL capacity. Overall, the industry is stable and well positioned for a strong 2021.
“With a strong liquidity position of $440 million at the end of 2020, along with the next $176 million of CARES Act loan Tranche B funds that we received in January, we are positioned to continue making significant investments into our business. We expect capital expenditures in 2021 to be in the range of $450 million to $550 million, with planned investments in tractors, trailers, technology, box trucks, containers, liftgates and other assets. Much of the new equipment is expected to enhance safety and improve fuel efficiency.
“In addition to a robust capital expenditure plan our key priorities in 2021 include meeting our customers’ evolving needs, mitigating increased purchased transportation expense and remaining focused on hiring and training drivers in a capacity constrained marketplace.
“During a challenging and unprecedented 2020, our nearly 30,000 employees persevered, continuing their essential service for our customers and the communities we serve with a proud sense of patriotism. They are heroes and their dedication and commitment are greatly appreciated. I have never been prouder of our team,” concluded Hawkins.
- On a non-GAAP basis, the Company generated Adjusted EBITDA of $57.9 million in fourth quarter 2020, a $10.6 million increase compared to $47.3 million in the prior year comparable quarter (as detailed in the reconciliation below). Last twelve months (LTM) Adjusted EBITDA was $191.9 million compared to $210.6 million in 2019 (as detailed in the reconciliation below).
- In fourth quarter 2020 the Company invested $99.2 million in capital expenditures which is equal to 8.5% of operating revenue. This compares to $31.7 million in capital expenditures and $18.5 million in capital value equivalent in new operating leases, for a total of $50.2 million and 4.3% of operating revenue in fourth quarter 2019.
- The operating ratio for fourth quarter 2020 was 98.8 compared to 99.2 in fourth quarter 2019.
- Fourth quarter LTL revenue per hundredweight, excluding fuel surcharge, increased 2.2% and LTL revenue per shipment increased 4.8% compared to the same period in 2019. Including fuel surcharge, fourth quarter LTL revenue per hundredweight decreased 0.7% and LTL revenue per shipment increased 1.8%.
- Fourth quarter 2020 LTL tonnage per day increased 2.4% when compared to fourth quarter 2019.
- The Company’s available liquidity, which is comprised of cash and cash equivalents and Managed Accessibility (as detailed in the supplemental information provided below) under its ABL facility, was $440.2 million as of December 31, 2020 compared to $80.4 million in the prior year, an increase of $359.8 million.
- The Company’s outstanding debt was $1.284 billion as of December 31, 2020, an increase of $381.2 million compared to $902.8 million as of December 31, 2019.
- For full year 2020, cash provided by operating activities was $122.5 million compared to $21.5 million in 2019.